Portugal's Non-Habitual Residence (NHR) tax regime was introduced in 2009. Since its introduction, many people moving to Portugal from other countries have been able to enjoy a highly advantageous tax arrangement.
What are the benefits of NHR?
Non-Habitual Residence in Portugal enables individuals moving from abroad to receive a tax-free income for ten years from both Portugal and the country from which they have arrived.
This income includes salaries, pensions, rental earnings, capital gains on property, interest on savings, dividends and almost any other non-Portuguese income. Pension income is tax-free whether pensions are paid weekly or taken as a lump sum for ten years, after which it will be taxed at the normal rate.
Who is eligible for Portugal's NHR status?
Portugal’s Non-Habitual Residence scheme was specifically introduced to encourage wealthy foreigners to relocate to the country. More specifically, it targets two groups:
To benefit from the NHR scheme, you must be legally resident in Portugal. This means you must either:
In addition, you must not have been taxed in Portugal, as a tax resident, in the previous five years.
How do I apply for NHR status?
If you are considering moving to Portugal, you should seek advice regarding the Non-Habitual Residence scheme from tax specialists who can provide you with complete and accurate information.
Along with the stunning climate and lifestyle southern Portugal offers, the NHR tax regime has made the Algarve an even more attractive location for retirees, knowledge workers and high net worth individuals.
One Select Properties helps you find your perfect Portuguese property. Explore the wide range of luxury homes we offer and you could soon be enjoying the Algarve sun, wonderful amenities and soaking up the unique ambience of southern Portugal. All with the additional disposable income resulting from your tax savings under the NHR regime.